Today’s issue in preview:

• Three ways to invest in Elon Musk’s next big move

• The longevity gold rush has a clear winner. How to invest.

• These stocks are quietly crushing the rest of the market. Are you profiting?

• Learn Our Top Themes to Buy Now

These stocks are quietly crushing the rest of the market. Are you profiting?

Credit: Ridofranz

To help us track and trade the world’s strongest business and technology trends, our Global Trend Tracker monitors over 170 industry groups, over 30 proprietary thematic indexes, over 70 ETFs, and over 3,500 public stocks.

This trend-tracking system serves as our “all-seeing eye” – an early-detection system that continuously monitors money flows and shifts in the market climate.

It is designed to identify powerful trends very early in their lifespans, giving us the opportunity to capitalize on them before they become popular investment themes. A business, product, or technology trend can barely twitch without being picked up by our Global Trend Tracker.

This week, our tracker emphatically states that in a market where many important sectors are trading weakly – including defense stocks, small caps, homebuilders, and banking stocks – the healthcare sector is displaying terrific “relative strength.”

For example, while many sectors are down significantly over the past month, the Invesco S&P 500 Equal Weight Health Care ETF (RSPH) just reached a new one-year high.

This fund is an equal-weighted, diversified basket of large health care firms such as Illumina (ILMN, genomic sequencing), Revvity (RVTY, life sciences), Intuitive Surgical (ISRG, surgical robotics), Biogen (BIIB, biotech), ResMed (RMD, sleep devices), and Pfizer (PFE, pharma). The fund is up 29% over the past year and is one of the few equity ETFs outside of the oil and gas complex to reach a new one-year high this week.

Avid Money & Megatrends readers know that “Boomer healthcare” is one of our highest-conviction long-term investment megatrends. We don’t know of another investment research publication that has written more bullishly, more often about this booming industry than we have.

Over the past year, we have published more than two dozen pieces on opportunities in drug development, biotechnology, senior living facilities, genomics, cardiology, diagnostics, and more.

Our bullish stance has produced a parade of home runs, with the healthcare industry dominating the stock market’s list of new highs over the past year.

Healthcare stocks are generating extraordinary returns because they are benefiting from several megatrends simultaneously…

One is demographics. More than 10,000 Americans reach retirement age every day. The U.S. population aged 80 and older is projected to roughly double, from 14.7 million in 2025 to 29.4 million by 2045.

This is the enormous Baby Boom generation entering the phase of life where health care and longevity spending skyrocket. For many boomers, a typical month involves going to see at least one doctor to have something looked at, removed, or treated.

This means many health care businesses are experiencing huge demand now – and will for at least the next decade.

Two is exponential technological progress. Thanks to major advancements in genomic sequencing, AI-powered analytics, imaging technology, and preventative treatment, healthcare is becoming much better and more personalized. This is driving strong demand for all kinds of new tests, tools, and treatments.

After all, when a useful and important service you buy gets much better, you typically buy more of it

Investing in many healthcare businesses over the next decade will be investing with a gale-force tailwind at your back. If you’re a parent and worried about your child getting a job, just point them to the booming healthcare industry.

The new high in RSPH serves as a reminder: The giant business, tech, and demographic trends that shape our world tend to play out in five or more years, not five months. This means the stock market trends they manifest play out over the same time periods. With this trend truism in mind, I once again remind you that if you like money, keep it invested in healthcare.

The longevity gold rush has a clear winner. How to invest.

Credit: svetikd

As with any large part of our economy, the booming healthcare sector (see above) comprises many smaller “sub-industries” that often perform much better or much worse than the broader sector.

Currently, one prominent member of the “doing better” category is the business of selling GLP-1 drugs.

As evidence, we cite the surging revenues and strong stock trend of one of our top healthcare “picks to click,” Eli Lilly (LLY).

Back in June, I detailed how drug giant Eli Lilly is uniquely positioned to benefit from soaring health care and longevity spending.

Data from the Federal Reserve shows that between 15 million and 20 million baby boomers are millionaires. More than 1 million boomers are worth more than $10 million. As mentioned above, the U.S. population aged 80 and older is projected to roughly double, from 14.7 million in 2025 to 29.4 million by 2045.

This is the largest group of wealthy people in history. It includes many motivated, older, wealthy people who can spend big on longevity.

One of the leaders of this investment trend – you could even call it the poster child – is drug giant Eli Lilly.

Lilly is the world’s largest seller of glucagon-like peptide-1 (GLP-1) medications. GLP-1 drugs mimic a natural gut hormone. They control blood sugar by stimulating insulin release, thereby slowing digestion and reducing appetite.

Over the past 5 years, this class of medications has exploded in popularity. A representative of healthcare giant IQVIA says GLP-1 therapies for weight loss generated $55 billion in sales over the past 12 months, which is up from $2 billion in 2022.

Many people who take GLP-1 drugs see drastic weight loss in less than six months… which should extend their lives.

Studies indicate that GLP-1 drugs may also lower cholesterol, slow cancer growth, and reduce the risk of cardiac disease. They are also prescribed to treat sleep apnea, which is a pervasive problem whose effective treatment should extend many lives.

In other words, GLP-1s are believed to be the closest thing to “miracle longevity drugs” that we currently have.

As a result, Eli Lilly’s sales are skyrocketing. The company recently reported quarterly sales growth of 48%. The results were driven by a 91% jump in demand for Lilly’s weight-loss drug, Mounjaro.

Soaring GLP-1 revenues are driving strong returns for Lilly shareholders. The stock has returned 49.7% over the past year… and is currently making a run to eclipse its all-time high reached in August. The Boomer health care theme continues.

Three ways to invest in Elon Musk’s next big move

Credit: Walter Cicchetti

Last week, shares of America’s three biggest telecommunication firms took one of their worst beatings in decades, thanks to Elon Musk’s SpaceX (SPCX).

Verizon (VZ), AT&T (T), and T-Mobile (TMUS) all dropped between 9% and 13%, wiping roughly $45 billion off their collective market value.

The trigger?

SPCX announced it was acquiring a nationwide spectrum license to become a major mobile carrier in the U.S. It’s paying about $8 billion for up to 14 megahertz of low-band airwaves. In other words, it is buying the legal rights to transmit wireless signals over specific radio frequencies.

Musk called it a “very big deal.” It potentially puts SpaceX on a collision course with Verizon, AT&T, and T-Mobile.

For years, Starlink has been considered a backup phone service… one that kicked in when you lost signal on a hiking trail or a rural highway. Not anymore. Investors now see a fourth national carrier coming to take customers from the incumbents.

And SPCX isn’t starting from zero. An estimated 13.5 million people already pay for Starlink internet, including about 4.1 million in the U.S. Those are likely easier wins: customers who already trust the brand and pay a monthly bill. Bundling a phone plan for those customers is the next logical step.

Obviously, there’s a long way to go to disrupt incumbents like Verizon, which has about 147 million wireless connections. But in a market estimated at $600 billion annually, even a few percentage points of customers switching to Starlink each year would be worth a lot.

In any case, the threat of SPCX disruption is likely still years away. The spectrum deal still needs approval from the Federal Communications Commission. SPCX’s next-generation direct-to-phone satellites won’t start launching until the second half of 2027. And it takes years for people to upgrade their phones and decide to switch away from their current provider.

But in the background, while all of this plays out, the demand for hardware to build this network will arrive long before the first customers sign up.

As a result, the “picks and shovels” suppliers behind Starlink are already seeing orders.

When a company with SPCX’s scale and speed decides to build, its suppliers feel it first. That’s where you want to be positioned as an investor.

Compelling investment candidates inside this long-term trend include:

Filtronic (FTC.L) is a roughly $800 million UK-listed company that builds the powerful amplifiers Starlink uses to transmit enormous amounts of data between satellites and ground stations. SpaceX is its largest customer, accounting for 68% of annual revenue, and holds warrants to acquire up to 15% of Filtronic’s shares. On Oct. 1, Filtronic announced its largest-ever SpaceX order: $68.1 million for advanced amplifiers, with deliveries expected primarily in fiscal 2028.

As SpaceX launches thousands of additional satellites and pursues millions of mobile phone customers, its network will need to handle vastly more data traffic. That should drive growing demand for Filtronic’s specialized amplifiers, making this sub-$1 billion company an intriguing way to invest in the satellite communications boom.

STMicroelectronics (STM) is a roughly $42 billion semiconductor giant that has spent a decade co-designing custom chips with SpaceX. Its advanced BiCMOS technology is a critical component of Starlink’s satellite dishes, and the company has reached a remarkable delivery rate of more than 5 million chips per day.

STM also supplies chips used aboard Starlink satellites and in ground infrastructure. Now SpaceX plans to expand into traditional mobile phone service, potentially installing small cellular base stations alongside its existing Starlink dishes. This could create another enormous market for advanced communications chips. STM expects to generate more than $3 billion in cumulative space-related revenue between 2026 and 2028, making it one of the clearest publicly traded beneficiaries of the satellite communications boom.

MACOM Technology Solutions (MTSI) is a $22 billion semiconductor company that makes the powerful radio-frequency chips satellite communications networks depend on.

Its specialty includes amplifiers that boost weak radio signals, allowing enormous amounts of data to travel between space and the ground. These chips are critical components of phased-array antennas, which use hundreds or thousands of tiny antenna elements working together to electronically steer signals.

In June, MACOM introduced new amplifier technology specifically designed for satellites that communicate directly with ordinary smartphones. That’s important because SpaceX plans to deploy up to 15,000 next-generation direct-to-phone satellites, each of which requires sophisticated communications hardware.

MACOM hasn’t been confirmed as a direct SpaceX supplier, but its technology positions it to benefit from the enormous satellite communications boom SpaceX is helping create.

Whether Starlink Mobile becomes America’s fourth major carrier in three years or ten, the hardware must be built first. STM, MTSI, and FTC all stand to benefit from the boom in satellite-based communications that SpaceX is leading.

Market Notes

• The Boomer health care megatrend continues to generate winners: Pharma giant Pfizer (PFE) reached a new one-year high today.

• Worries over mid-term elections and potential changes in defense spending helped send military firms Aerovironment (AVAV) and Kratos Defense (KTOS) to new one-year lows today.

• Quantum computing stocks Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) reached new one-year lows today.

• Uranium miners Denison Mines (DNN) and Uranium Energy Corp (UEC) reached a new one-year low today.

• Air taxi firms Joby Aviation (JOBY) and Archer Aviation (ACHR) reached new one-year lows today.

• Nuclear energy technology firms Oklo (OKLO) and NuScale Power (SMR) reached new one-year lows today.

Regards,

Brian Hunt
Editor, Money & Megatrends

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The post Three ways to invest in Elon Musk’s next big move appeared first on MarketWise.

The richest man in the world says he is not building a phone… again, and again, and again…

Last October, Elon Musk sat down with Joe Rogan. “I am not working on a phone,” he said.

On January 30, someone on X chimed in …

The important part there is that “it would be a very different device than current phones.”

Then, a few days later, Reuters reported that SpaceX had plans for a Starlink phone. Musk’s response:

Then on July 1, the Wall Street Journal reported that SpaceX had shown investors a prototype of a handset-like AI device before its June IPO. The report said the device was slimmer than an iPhone, ran its own operating system, and used technology from Musk’s AI company, xAI. Musk posted two words in reply:

Case closed?

Not quite, according to Josh Baylin – a former Bloomberg tech reporter and hedge-fund trader. And he thinks the denial is the most interesting part of this story…

His argument is simple: Musk may indeed be telling the truth when he says there’s no finished phone sitting in a drawer in Starbase.

Nonetheless, practically every piece required to build a phone has already been bought, filed, licensed, or launched by one of Musk’s companies… The spectrum, satellites, chips, AI, trademarks, and even the regulatory clearances.

Until we have an official name, Josh is calling this potential device by the moniker, “Starphone.”

And just a few days ago, the U.S. government handed SpaceX the last piece of the puzzle…

In early October, the Federal Communications Commission approved SpaceX’s plan to launch 15,000 next-generation satellites for a service called Starlink Mobile. More importantly, the agency waived the rule requiring SpaceX to lease spectrum from a ground-based carrier.

In plain English, SpaceX can now sell wireless service to Americans on its own.

A company that can beam 5G to your phone from orbit… that owns one of the most capable AI models in the world… and that controls the cheapest and most reliable rocket launches on Earth now has permission to be your phone company.

Here’s the timeline so far…

• September 2025. SpaceX agrees to pay $17 billion for wireless airwaves owned by EchoStar (SATS). Half in cash, half in SpaceX stock. This is spectrum that gives SpaceX the exclusive right to broadcast on a slice of radio frequencies… including straight to ordinary cell phones.

• October 2025. SpaceX files to trademark the name “Starlink Mobile.” The application covers personal cellular service and two-way voice, text, and audio. That sure sounds like a phone company to me. The company also filed a companion mark, “Powered by Starlink.”

• November 2025. SpaceX buys another $2.6 billion worth of spectrum from EchoStar.

• January 2026. SpaceX asks the FCC for permission to launch up to one million satellites that would run AI in orbit.

• February 2026. SpaceX absorbs xAI, the company behind the Grok AI chatbot. Now Elon’s rockets, satellites, social network X, and AI all sit under one roof.

• May 2026. Ahead of its IPO, SpaceX files its SEC paperwork… defining Starlink Mobile as a service that delivers cellular connectivity straight to everyday smartphones via satellite. It says the next generation of mobile satellites, combined with the EchoStar airwaves, is designed to deliver “a connectivity solution on par with terrestrial mobile networks.”

• October 2026. SpaceX announces it intends to acquire a low-band spectrum license portfolio in the 800 MHz band. As the company put it… “This prime low-band spectrum addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the US.”

So here’s the question Josh keeps asking: Why would Musk build all of that and then let another company sell you the device?

The stakes here are massive. Your phone is the most personal piece of technology ever made… It’s the first thing most folks touch in the morning, and the last thing they put down on the nightstand in the evening.

To hear Josh’s prediction in his own words – click here for his full, exclusive interview.

The post What Is Elon Musk’s “Starphone”? Investigating the iPhone Killer He Says Doesn’t Exist appeared first on MarketWise.

Today’s issue in preview:

• Stocks for investing in a massive new AI trend

• This AI trade has turned into a moneymaking juggernaut

• This industry has massive upside potential. How to trade it from here

• Learn our Top Themes to buy now

Stocks for investing in a massive new AI trend

Credit: BlackJack3D

To track and trade the world’s strongest business and technology trends, our Global Trend Tracker monitors over 170 industry groups, over 30 proprietary thematic indexes, over 70 ETFs, and over 3,500 public stocks.

This trend-tracking system serves as our “all-seeing eye” – an early-detection system that tracks money flows and shifts in the market climate.

It is designed to identify powerful trends early in their lifespans, giving us the opportunity to capitalize on them before they become widely recognized. A business, product, or technology trend can barely twitch without being picked up by our Global Trend Tracker.

Today, one of the powerful messages our trend tracker is sending is that the genomics theme is booming… and our longstanding recommendation to be long this megatrend is paying off massively.

This week, genomics-related companies and ETFs reaching important new highs include:

• Illumina (ILMN) is a leader in DNA sequencing systems and genomic analysis tools used in research, diagnostics, and precision medicine.

• Guardant Health (GH), which develops blood-based cancer tests for early detection, treatment selection, recurrence monitoring, and precision oncology.

• Twist Bioscience (TWST) is a manufacturer of synthetic DNA products used in drug discovery, diagnostics, genetic research, and next-generation sequencing.

• 10x Genomics (TXG) is a maker of advanced genomic research tools for analyzing individual cells, tissues, and spatial patterns of gene activity.

• Adaptive Biotechnologies (ADPT), which analyzes immune-system genetics to develop tests and research tools for cancer, autoimmune, and infectious diseases.

• GRAIL (GRAL) is a leading developer of blood-based screening tests designed to detect dozens of different cancers at their earliest stages.

• The ARK Genomic Revolution ETF (ARKG) is one of the world’s most “bleeding-edge genomics-centric” ETFs.

Money & Megatrends readers in good standing are not surprised to see the genomics theme surge to new highs. On Oct. 9, 2025, we detailed the sector’s large upside potential and recommended getting long.

Over the past year, we’ve written over 20 research notes about the extraordinary upside potential of biotech and genomics. I don’t know of any other research publication that has been so early to this trend and written so frequently and emphatically about it.

Since our original note, many of the most important genomics companies have skyrocketed.

Genomics is the science of analyzing human DNA – the “software code of life” – to create tests, medicines, and treatments.

Years of innovation in this field are allowing healthcare firms to create customized treatments based on an individual’s DNA… and even “edit” genes to cure disease. This field is in the early innings of being transformed and turbocharged by AI. Super-intelligent computer programs can analyze massive datasets to enable early detection and personalized treatments. They are starting to design entirely new drugs.

The fusion of AI and genomics is generating massive winners in the stock market. We believe this trend is in its early stages. Researchers running superintelligent AI programs will be able to create useful new diagnostics and run millions of digital simulations of drugs and treatments. This will put medical innovation into overdrive… and create many big stock market winners.

This AI-driven, personalized, and preventative approach has us in the early innings of a historic revolution in healthcare. Ten years from now, medicine will be transformed… and a lot of money will be made along the way.

I’ve frequently mentioned how the ARKG is a good way to track and trade the genomics theme. It owns a basket of bleeding-edge genomic companies.

One of its largest holdings, Tempus AI (TEM), is often cited as a premier way to play “AI in health care.” It holds 10x Genomics and Twist Bioscience. It also holds significant positions in Guardant and Illumina… plus positions in promising “gene editing” companies CRISPR Therapeutics (CRSP) and Intellia Therapeutics (NTLA).

Getting into the genomics theme has proven to be one of our top-performing recommendations of the past two years. This sector was relatively small when we recommended getting into it. This means even modest new inflows of money can have enormous effects on stock prices.

Since our October 2025 recommendation, GH is up 181%. ILMN is up 204%. TWST is up 533%. TXG is up an extraordinary 681%.

These big individual moves have powered ARKG to a 74% since our 2025 recommendation, making it one of the world’s top-performing ETFs over that time.

After going on such a big run in such a short time, it is reasonable to expect the genomics theme to correct and digest its gains. But given how early we are in the process of “AI + genomics-based” diagnostics, analytics, and drug development, any such correction will likely be followed by another leg up for this high-growth industry.

This AI trade has turned into a moneymaking juggernaut

Credit: ismagilov

Genomics isn’t the only well-timed Money & Megatrends theme on the stock market leaderboard. The cybersecurity sector is leading the market… and making our March 27 recommendation to get long the sector a large winner.

This week, cybersecurity stocks reaching important new highs include Palo Alto Networks (PANW), CrowdStrike (CRWD), Fortinet (FTNT), Okta (OKTA), Rubrik (RBRK, and SentinelOne (S).

These strong individual performers have helped make the Global X Cybersecurity ETF (BUG) a large winner, up 88% over the past six months. The fund reached an all-time high this morning.

Back in March, we detailed how cybersecurity stocks were a compelling way to invest in our forecasted Agent Supernova, which is the explosion of AI agents that work for us, think for us, shop for us, invest for us, and solve hundreds of different problems for us.

In that issue, we detailed how this Agent Supernova was poised to explode, creating a huge number of new cybersecurity threats across banking, transportation, social media, energy production, healthcare, manufacturing, and many other industries.

If we’re going to have millions of AI agents performing billions of daily tasks in health care, education, energy, transportation, manufacturing, and technology, then we’re going to have billions of points of cybercrime vulnerability. And remember, crooks get to use AI too.

If agents can roam the web, communicate for you, log in to your apps, move money, and modify data at machine speed, then a compromised agent can do the same damage just as fast – now with far less human oversight to catch mistakes or intrusions. We stated this is why well-positioned cybersecurity companies are poised to enjoy years of booming business.

Concerns over AI safety have surged over the past two months, thanks to current and former Anthropic employees airing concerns that AI “could kill us all.”

They have shared precious few details on exactly how AI would do that, but presumably, they have some movie scenarios in mind, such as a “bad” AI taking over nuclear missile launches, developing a killer virus, or taking over transportation systems and causing catastrophic accidents.

Whatever the vector is, the public is now sufficiently spooked over AI. Political leaders are spooked over AI. And business leaders are spooked over AI.

This is all bullish for the cybersecurity business. After all, few things drive large increases in corporate cybersecurity budgets like a global AI panic.

We can see the future very clearly: Your average Fortune 500 CEO will be encouraged by his board to increase the cybersecurity budget. He will be encouraged by his executive team and workforce to increase the cybersecurity budget. Even his wife and kids will encourage him to increase the cybersecurity budget.

After all, the guy on the news said that “AI could kill us all”!

At the time of our March note, cybersecurity stocks – a special type of software stock – had suffered a sharp decline due to investor concerns that AI would disrupt software.

Soon after our note, cybersecurity stocks staged a huge rebound as investors began to believe AI wouldn’t disrupt the business as much as they had thought. CrowdStrike has returned 186%. Palo Alta has returned 169%. The Global X Cybersecurity ETF has returned 93%.

AI is the most exciting and potentially transformational technology of our time. The high-profile concerns aired by AI insiders over the past few months indicate that it’s probably also the most dangerous. That’s bullish for the cybersecurity industry.

This industry has massive upside potential. How to trade it from here

Credit: 3DSculptor

Are the beatings over for space stocks?

Can morale improve and create a new and rewarding bull market here?

We are starting to get indications that this could be the case…

Money & Megatrends readers in good standing will recall our belief that space-related industries will enjoy tremendous growth and generate many large stock market winners over the next five years.

On Sept. 22, 2025, I wrote a bullish piece on space stocks and said it’s a sector that the “public could go wild for.” I stated the bull case like this:

When people think of investing in space, they often go towards the business of launching rockets and Elon Musk’s SpaceX. But many of the most promising “space stocks” are in the business of space-based communication platforms and equipment. Think government surveillance, military communication, GPS, internet service, and cell service.

The best big picture fundamental case for space stocks right now is that the Trump administration believes America is in a hugely important competition with China and other countries for “space dominance.” This means regulatory and financial support for the U.S. space industry.

… Top performing individual space names worth checking out include Rocket Lab (RKLB), BlackSky (BKSY), Planet Labs PBC (PL), and AST SpaceMobile (ASTS).

Soon after our note, many space stocks soared 50%-100%, powered in part by anticipation of SpaceX’s (SPCX) gigantic IPO in June.

After that runup, however, space stocks experienced a large correction. I viewed this correction as natural, given its huge preceding run-up. No sector runs higher week after week in a straight line. The space trade needed to “work off” a lot of froth and enthusiasm.

As you can see in the one-year chart below for RKLB, the correction appears to be ending… and health is being restored to this high-potential trend.

After supergiant Space X, Rocket Lab is America’s largest “space economy” stock.  This makes it one of the most widely followed and widely traded stocks in the industry. Its stock price trend gives us a good “real-time” read on the health of the space trade.

Rocket Lab makes rockets, satellites, and critical spacecraft components. Its Electron rocket launches small satellites into orbit, while its larger, reusable Neutron rocket is under development for heavier payloads.

Rocket Lab also manufactures satellite platforms, solar cells, navigation systems, and other space hardware used by commercial and government customers. Increasingly, the company can design, manufacture, launch, and operate entire satellite systems, making it one of the most vertically integrated competitors to SpaceX. Revenue has soared from $244 million in 2023 to $601 million in 2025.

As you can see in the 18-month chart below, RKLB enjoyed a spring rally and corrected in the summer, along with the rest of the space economy sector. The stock has found a bottom in the $60-$65 per share range, rebounded off it, and reached a one-month high this morning.

By itself, this new constructive price action for one of the leading space stocks does not mean “all clear, back up the truck and buy” for the space trade. However, it’s a step in the right direction. This high-potential trade is now near the top of our watch list.

Market Notes

• Our recommendation to ignore the AI bears and stay long the AI infrastructure trade continues to pay off. AI leaders Nvidia (NVDA), Advanced Micro Devices (AMD), and Everpure (P) all hit new highs today.

• Our February 20^th recommendation to get long Brazil is doing well. Itau Unibanco (ITUB) and Banco Bradesco (BBD) just hit new highs.

• Leading diagnostics firm GRAIL (GRAL) continues to lead the market. The stock reached a new one-year high today. It is up 165% since our bullish June 12 note.

• The Made in America megatrend we’ve been forecasting continues to generate stock winners. ProtoLabs (PRLB) is off to a good start as the stock just hit a new yearly high. Our pick-to-click Xometry (XMTR) also reached a one-year high.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

Elon’s Big Lie

Elon Called This “Utterly False”… But the Evidence Says Otherwise. WSJ and Reuters both published this rumor. Elon denied it twice.

Here’s what he’s hiding.

The post Stocks for investing in a massive new AI trend appeared first on MarketWise.

Today’s issue in preview:

• This explosive, high upside sector is running higher. Do you own it?

• This industry has enormous upside potential. How to trade it from here.

• The most important bull market the mainstream media isn’t covering for you

• Learn our Top Themes to buy now

This industry has enormous upside potential. How to trade it from here

Credit: Walter Cicchetti

After trading sickly for two months, it looks like the trend in space stocks is getting healthy again.

Money & Megatrends readers in good standing will recall our belief that space-related industries will enjoy tremendous growth and generate many large stock market winners over the next five years.

On Sept. 22, 2025, I wrote a bullish piece on space stocks and said it’s a sector that the “public could go wild for.” I stated the bull case like this:

When people think of investing in space, they often go towards the business of launching rockets and Elon Musk’s SpaceX. But many of the most promising “space stocks” are in the business of space-based communication platforms and equipment. Think government surveillance, military communication, GPS, internet service, and cell service.

The best big picture fundamental case for space stocks right now is that the Trump administration believes America is in a hugely important competition with China and other countries for “space dominance.” This means regulatory and financial support for the U.S. space industry.

… Top performing individual space names worth checking out include Rocket Lab (RKLB), BlackSky (BKSY), Planet Labs PBC (PL), and AST SpaceMobile (ASTS).

Soon after our note, many space stocks soared 50%-100%, powered in part by anticipation of SpaceX’s (SPCX) gigantic IPO in June.

After that runup, however, space stocks experienced a large correction. I viewed this correction as natural, given its huge preceding run-up. No sector runs higher week after week in a straight line. The space trade needed to “work off” a lot of froth and enthusiasm.

As you can see in the one-year chart below of the Procure Space ETF (UFO), the space theme looks to have formed a bottom in the mid-$40 per share range.

This is also where the fund traded in a sideways consolidation earlier this year. UFO used this price level as a base to mount an assault on the $48-per-share area, which it reached last week.

This bit of positive price action is enough for me to say the space theme is likely in a healthy uptrend again, which means the tailwinds are shifting back in favor of long positions.

We still like the names above and the ETF above… and we’ll be sharing more ideas and analysis on this trend soon.

The most important bull market the mainstream media isn’t covering for you

Credit: Traimak_Ivan

If you’re looking for some good news or a reason to be optimistic on America, look no further: The Invesco S&P SmallCap Industrials ETF (PSCI) is in a bull market… and just pennies from reaching a new all-time high.

That’s good for America… and good for your 401(k).

PSCI is one of the most important ETFs you’re probably not following. It holds a diversified basket of critical but lesser-known U.S. manufacturing firms.

These companies typically don’t make the front page. There’s no “rock star” CEO like Elon Musk in this area of the market.

These firms operate with little fanfare, providing critical equipment and services the U.S. economy cannot function without. You may not know them, but you most certainly encounter their products when you walk into an office, turn on your car, or flip on the lights.

Our factories, vehicles, homes, and cities cannot function without their specialized pumps, motors, filters, fans, valves, fasteners, tools, gaskets, wiring, bearings, and switches. These businesses are the backbone of the American economy. And they are doing great.

In late 2025 and early 2026, I frequently highlighted how many critical, yet unrecognized U.S. manufacturers were reporting excellent business results and enjoying rising stock prices. At the time, PSCI was regularly registering new all-time highs.

However, PSCI suffered an Iran War-induced selloff alongside the broader market. Shares dropped 14% in six weeks. Since then, PSCI has surged to new highs. As you can see in the chart below, the fund is in a beautiful three-year uptrend.

This exceptional price strength means the economy is doing very well. We are making and buying lots of trucks, tractors, concrete, steel, engines, HVAC systems, data centers, power plants, transmission lines, and communication networks.

The stock market is one of the world’s greatest forecasting mechanisms. It tends to look ahead 6-12 months. When an industry is in a recession, its stock prices will rise before the news media says it is recovering. When an industry seems to be doing well, its stock prices will decline before the news covers its downturn. This is often called “discounting the future.”

There’s a variety of negatives at work inside the U.S. economy. Stock market bears and pessimists can find all kinds of reasons to avoid stocks. But new all-time highs in industrial stocks mean the evidence is working against them.

This explosive, high upside sector is running higher. Do you own it?

Credit: gorodenkoff

This morning, shares of giant biotechnology firm Amgen (AMGN) advanced 1.3% to reach a new all-time high.

Amgen is the largest holding in the iShares Nasdaq Biotechnology ETF (IBB), so its strong performance helped push the fund to a new all-time high.

These important moves mean the biotechnology bull market is alive and well… and full of opportunity. They also make our recommendation to invest in this theme a very large winner.

On Aug. 18, 2025, I sent a research note to colleagues outlining my bullish view of the biotech sector’s price action. Since then, I’ve written more than a dozen updates on the biotech bull market, as IBB has risen 46.8%, far outpacing the S&P’s 19.5% return.

IBB focuses on large biotech firms such as Amgen (AMGN), Vertex Pharmaceuticals (VRTX), and Gilead Sciences (GILD). The S&P Biotech ETF (XBI), which focuses on smaller biotechs, has risen 76.9% compared to the S&P’s 19.5% return.

The biotechnology sector comprises companies working on cures and treatments for hundreds of diseases. When investors grow interested in this industry, the returns can be incredible. During the last biotech bull market, the sector soared 300% over four years.

Biotech performed poorly from 2021 through 2025, so most investors are indifferent to it. But I see major potential here. This industry is poised to generate many stock market doubles and triples over the coming decade.

The fusion of AI plus biology will generate dozens of compelling stock narratives over the coming years. Researchers running superintelligent AI programs will be able to run millions of digital simulations of drugs and treatments. This will put medical innovation into overdrive… and create many big stock market winners.

Companies that leverage AI to “crack the code” for various diseases, treatments and drugs will enjoy 100%… 500%… even 1,000%+ stock rallies.

In many cases, these rallies will happen thanks to stories and potential… rather than a company generating revenue or earnings.

Capitalizing on many of today’s biggest stock market trends means focusing on promise over profits. The biotech sector holds the potential for both.

Biotech has another powerful factor working in its favor: Virtual anonymity.

The investment public is largely indifferent to the biotech industry right now. Investment newsletter sales related to biotech are tiny. Biotech specialists posting on X get scant attention. CNBC does not have a show devoted to biotech. Presentations on biotechnology stocks are not popular at investment conferences.

If I were to bring up biotech investing to a group of casual, amateur investors, I’d get blank stares in return. This “state of indifference” is very bullish for biotech stocks.

When the investment public is indifferent towards a powerful theme, it tells you valuations have not been bid up to unrealistic levels… so there’s plenty of room to grow into high valuations. Plus, it means there’s a lot of money on the sidelines that could eventually pile into the trend, sending it much higher.

In other words, “A strong industry uptrend + public indifference towards that industry” is one of the greatest moneymaking equations in all of finance.

Investors with the time to spend on picking individual biotech stocks and managing the positions can generate large returns in a biotech industry uptrend. For example, over the past year, at least 14 companies with “therapeutics” in their names have delivered returns of 300%+ or more.

If you don’t want to spend time researching and managing individual biotech stock positions, ETFs can get you exposure to this industry. XBI and IBB are worth considering.

The biotech industry has tremendous price momentum working in its favor… plus the investment public is largely indifferent to its success. This is a powerful combination that makes more new highs a high-probability bet.

Market Notes

• The uptrend we highlighted in psychedelic medicine stocks has become a big winner. The AdvisorShares Psychedelics ETF (PSIL) is up 55% since our bullish March 16 note. The fund is benefiting from expectations that the U.S. government will ease regulations related to psychedelic treatments.

• Our September 2025 recommendation to own oil and gas stocks continues to be a winner. The Energy Select Sector SPDR Fund (XLE) reached a new all-time high today. XLE is the world’s largest oil stock ETF.

• Our recommendation to own oil and gas pipeline stocks continues to be a huge winner. The Alerian MLP ETF (AMLP) reached a new all-time high this week.

• The bull market in health care diagnostics we’ve been highlighting continues to generate winners. Diagnostics giant Labcorp (LH) reached a new all-time high today.

• The Iran War and its constriction of Middle Eastern oil supplies continue to work to the advantage of U.S. oil refiners. Industry giants Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO) reached new all-time highs today.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

SpaceX ‘Dark Energy’ Replaces Foreign Oil

For years, we’ve been told SpaceX is a rocket company. But according to new satellite images from 300 miles above the Earth’s surface, there is something very strange going on at SpaceX right now that has nothing to do with space. It could soon replace our need for foreign oil forever and ignite a $10 trillion boom for the stocks involved.

Click here to learn more.

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It is looking increasingly likely that SpaceX (SPCX) will acquire carmaker Tesla (TSLA), with even SpaceX and Tesla CEO Elon Musk not denying the possibility. While the move could make some sense for operational and business reasons, Musk’s insatiable ego is the driving factor.

But as pessimistic as I was about the rationale for the merger, I still failed to account for a key reason for Musk to merge the two firms: He stands to earn megabucks in performance bonuses from Tesla as part of the $1 trillion compensation package he signed with the carmaker last year.

For investors in Tesla and SpaceX, the ultimate question is really: Will SpaceX vastly overpay for Tesla, hurting SpaceX investors for the benefit of Tesla investors? Or will SpaceX offer a fair price for Tesla, thereby reducing the stock price of the massively inflated Tesla and benefiting SpaceX investors?

The best prediction is probably to look at Musk’s compensation package and determine the circumstances in which he benefits most.

Here’s How Elon Musk Benefits in a SpaceX-Tesla Merger

Musk benefits in the event of a takeover of Tesla, due to his 2025 CEO Performance Award Agreement with Tesla. The agreement laid out 12 different awards that Musk could earn for achieving various operational goals, such as delivering 20 million Tesla vehicles, or by market capitalization goals such as Tesla being valued at $2 trillion or $2.5 trillion, for example.

For each of the 12 levels, Musk could earn more than 35.3 million shares of Tesla, which are currently worth about $11.5 billion at a stock price of $326.

But achieving the operational goals is not necessary in the event of a change of control, such as if SpaceX acquires Tesla. In this case, all that needs to happen is for Tesla’s market cap to exceed one or more of the thresholds for Musk to achieve at least some of the shares.

At a share price of $500 – where Tesla’s market cap is about $2 trillion – each 35.3-million-share tranche is worth nearly $18 billion. So, the bigger the size of the deal, the larger his payday could become, as he earns more shares at a higher valuation.

Because Musk owns supervoting stock in SpaceX that gives him effective control of the company, he has a strong ability to decide whether SpaceX acquires Tesla and at what price. So, he has both the incentive to overpay for Tesla and the means to make a merger occur.

Given his strong voting position in SpaceX, he can even overpay for Tesla using SpaceX stock while still maintaining effective control of the newly merged firm, as a Wall Street Journal article shows. Even if SpaceX pays at the top of the compensation range for Tesla – a whopping $8.5 trillion – Musk would still hold control of the merged company, with about 56% of the vote.

At that level, he’d add more than $800 billion to his personal wealth, soaking SpaceX investors by massively overpaying for Tesla stock. Again, there’s that conflict of interest.

This level of self-dealing – It may all be too much for even the most ardent Musk fans, despite all the opportunity inside the company: rocket ships, Starlink satellites, Optimus robots, Terafab, as well as the hidden financial business inside SpaceX.

Tesla Explores Divesting Its China Business

A SpaceX-Tesla merger might require Tesla to separate its Chinese business in some form, and Tesla has been exploring that possibility, according to the Wall Street Journal. While Musk called the article “fake news,” a divestiture would prove problematic, given Tesla’s enormous valuation.

The concern here is that SpaceX is a significant defense contractor, with the federal government making up 20.9% of its 2025 sales. With SpaceX units such as top-secret satellites, the U.S. would want some separation between the company and China. At the same time, China would take a close look at a SpaceX merger if it led to a U.S. contractor controlling Tesla factories.

Tesla executives have been told to prepare for the Chinese unit to be hived off, whether that’s a spinoff, a sale, or even a closure. A sale or spinoff could prove particularly problematic because it would cause a standalone Chinese unit to be valued separately from Tesla as a whole.

A standalone valuation of the China unit will prove problematic because Tesla is so overvalued to start with. Tesla might actually be worth 80%, 90%, or maybe 95% less than today’s value, about $1.3 trillion, but Tesla enjoys a Musk premium, a price boost because Musk is at the helm.

But a strategic acquirer such as another car company will not purchase Tesla China at a price that’s 5 to 20 times higher than its actually worth, as the stock market is doing. So, a sale of the China unit at something near fair value necessarily means that the remaining non-China units are being priced by the market at an even more massive overvaluation, given their assets.

In this case, a SpaceX acquisition of Tesla near its current price implies a huge overpayment for the remaining Tesla assets. In other words, SpaceX investors get hosed, while Tesla investors enjoy a huge windfall by selling their overinflated assets – one reason Tesla is too risky to short.

A spinoff of Tesla China into a separate publicly traded company isn’t likely to solve the problem either. If the market is not willing to award the spinoff a Musk premium, it’s not going to fetch the kind of price that it’s currently doing inside Tesla today, where it’s likely 5 to 20 times overvalued. In this case, SpaceX would again vastly overpay for the remaining Tesla assets, soaking investors.

Given the huge difficulties created by Tesla’s overvaluation, the company has been exploring other ways of “firewalling” the Tesla China unit from the rest of the business.

Why SpaceX Is Likely to Acquire Tesla

Besides the personal payday for Musk, Musk may seek to combine SpaceX and Tesla for a variety of other reasons:

• Musk has a history of merging companies to paper over bad news: Tesla bought the debt-laden SolarCity in 2016, of which Musk owned 20%. The move bailed out Musk’s personal investment in the renewable energy company, which his cousins managed.

• A merger puts Musk in total control:Musk runs the whole ship at SpaceX through his supervoting stock, and a purchase of Tesla may mean that he can simply ignore investors who want to challenge his decisions or compensation, for instance.

• A SpaceX-Tesla merger stokes Musk’s ego:A merger would put the Musk-helmed company among the world’s largest companies by market capitalization.

Investors should expect to see more of Musk and his team laying the groundwork for a potential merger in the coming quarters, much as he did in the last earnings call:

Well, as you can tell from all the many collaborations on so many fronts with SpaceX, there’s more and more overlap, especially with Terafab, that’s really going to be a gigantic project. Obviously, we can’t talk about combining companies and that kind of thing on an earnings call. It’s got to be done with the appropriate process.

This kind of non-denial shows that Musk is likely to be actively pursuing a merger, and it’s only a matter of time before we get the details. As we’ve seen in Musk’s recent deals, he’s going to come out of it just fine. The real question is which investor group – SpaceX’s or Tesla’s – gets worked over harder. It looks like Musk’s money is riding on SpaceX to pay up for Tesla.

Regards,

James Royal, PhD

Editor’s Note: Elon Musk revived the electric car, pioneered reusable rockets, and beamed down internet to the four corners of the Earth. But his new initiative – “XPANSE” – could be bolder… more transformative… and far more lucrative than all of these innovations combined. And, like Tesla and SpaceX, it could make early investors incredibly wealthy. Click here for the details… 

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SpaceX (SPCX), which I’ve long called the most overvalued large-cap stock of all time, reported earnings yesterday after the close…

And even the greatest stock promoter of all time, CEO Elon Musk, couldn’t keep the shares from tumbling as much as 13% early this morning.

Year over year, revenue grew 92% – from roughly $4.1 billion to $7.8 billion. Meanwhile, losses from operations narrowed from about $970 million to $143 million. And “Segment Adjusted EBITDA” (earnings before interest, taxes, depreciation, and amortization) grew from around $1.2 billion to $3.5 billion.

SpaceX also said that cash provided by operating activities rose from roughly $351 million to $3.5 billion. However, the company only reported “Selected Cash Flow Information” for the first six months of this year versus that period last year – which is totally unacceptable for one of the most valuable companies on the planet.

Take a look at this breakdown from page 10 of the earnings release:

So why did the stock take such a hit?

Massive Capex Spending Swallows Cash Flows

In part, it’s because of a massive increase in capital expenditures (“capex”) – largely in the company’s AI division (which includes chatbot Grok and social media platform X).

Take a look at the breakdown here on page 3 of the release:

The company’s roughly $28.5 billion capex amounted to more than 8 times its $3.5 billion operating cash flow. As a result, SpaceX’s free cash flow (“FCF”) was a horrific negative $25 billion in the first six months of the year.

This is consistent with what I wrote in my June 5 e-mail. SpaceX has two great businesses and one terrible one:

… the company’s gem is Starlink. It more than doubled its subscriber count from the first quarter of 2025 and is highly profitable…

Though it lost money in the first quarter, the space-launch business is also unparalleled. It accounts for more than 50% of all worldwide orbital launches and more than 80% of all mass sent into orbit.

But a totally unrelated segment, xAI, is dragging down these two great businesses. It’s burning huge amounts of cash in an attempt to keep up with its much larger competitors – not just [Alphabet’s (GOOGL)] Google but also Meta Platforms (META), Amazon (AMZN), and Microsoft (MSFT), among others.

SPCX Float Creates a Drag on its Share Price

Another major factor weighing on the stock is that the number of SpaceX shares that are eligible to trade (its so-called the “float”) nearly tripled. SpaceX sold 555.6 million shares in its June 12 IPO at $135 each – raising about $75 billion while valuing the company at roughly $1.77 trillion.

Under the IPO prospectus, up to 911.5 million shares – about 20% of the early-release eligible pool held by employees and most pre-IPO investors – become transferable just after the first earnings report.

At SpaceX’s price early this morning, that’s around $100 billion of stock.

I have to imagine that many holders will be eager to sell to diversify – especially in light of the stock’s absurd valuation.

And that’s the main problem with SpaceX’s stock…

With a tiny float of 4% to 5% since the June 12 IPO and a huge $500 million payoff to the Wall Street banks – whose analysts of course debased themselves pumping it (as I covered in my July 9 e-mail) – the stock was manipulated to the moon.

What SpaceX Might Actually Be Worth

The company just reported around $7.8 billion in quarterly revenue. Annualized, that comes out to roughly $31.4 billion.

But on the conference call, Musk said SpaceX will reach a $100 billion annual revenue run rate (“ARR”) by the end of the year thanks to AI compute deals.

This is as ridiculous as his claim a year ago that, by the end of 2025, Tesla (TSLA) would be serving half of the American population with fully autonomous robotaxis. The actual number at year end was roughly 15 robotaxis in one city – Austin, Texas.

Being extremely generous, I’ll give SpaceX a $50 billion ARR by year-end and an equally generous multiple of 10 times revenue. That’s $500 billion.

The stock price decline early this morning put the market cap at around $1.5 trillion. That would mean the stock would be overvalued by at least 3 times – by roughly $1 trillion.

I continue to believe that SpaceX is the most overvalued large-cap stock ever.

Editor’s Note: This article was adapted from today’s edition of Whitney Tilson’s Daily. Every day, Whitney emails his readers with his comments on the most important topics of the day, including stocks he’s investigating… great articles he has read… his media and podcast appearances. You can sign up here to receive all of Whitney’s daily thoughts and insights.

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